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Required information [The following information applies to the questions displayed below.) Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021:
Required information [The following information applies to the questions displayed below.) Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Accumulated Depreciation Land Building Equipment Patent Cost $ 69,000 544,000 131,600 85,000 $(195, 840) (26,800) (34,000) Book Value $ 69,000 348,160 104,800 51,000 Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 9- year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020. Required: 1. For the year ended December 31, 2021, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the depreciation on the building. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 69,632 Depreciation Expense Buildings 69,632 2. For the year ended December 31, 2021, record amortization expense for the patent. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the amortization on the patent. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 3. Calculate the book value for each of the four long-term assets at December 31, 2021. TOGO'S SANDWICH SHOP December 31, 2021 Book Value Land Building Equipment Patent
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